Seoul, May 22 (IANS) Consumer sentiment rose at the fastest pace in about a year in May, driven by robust semiconductor exports and the stock market rally, the central bank said on Friday.

The composite consumer sentiment index (CCSI) stood at 106.1 this month, up 6.9 points from April and surpassing the 100-point mark for the first time in two months, according to a survey by the Bank of Korea (BOK), reports Yonhap news agency.

The reading had fallen for two straight months in March and April.

The latest figure also marked the sharpest on-month increase since June last year, when the index rose by the same margin of 6.9 percent.

A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 suggests the opposite.

The subindex for people’s assessment of current economic conditions came in at 83 in May, up 15 points from a month earlier. The increase is also the largest on-month gain since October 2020.

The index for people’s outlook for future economic conditions rose by 14 points to 93 over the same period, backed by South Korea’s first-quarter gross domestic product (GDP) growth of 1.7 percent, the sharpest in more than five years.

“Optimism was supported by strong semiconductor shipments, better-than-expected first-quarter GDP growth and upward revisions to economic projections by major institutions, while the stock market rally also boosted sentiment,” a BOK official said.

South Korea’s exports expanded 48 percent on-year to US$85.9 billion last month, marking the second-highest monthly figure following March’s $86.6 billion, with chip exports spiking 173.5 percent.

The export boom driven by semiconductors also lifted the stock market, with the benchmark Korea Composite Stock Price Index (KOSPI) climbing from the 6,900-point range at the beginning of May to above 7,900 in mid-May.

The latest monthly BOK index is based on a survey of 2,253 households throughout the country conducted from May 8-15.

—IANS

na/